While the Short Sale process has been in a state of flux over the last two years; in the last quarter, because of the pressure put on by the Federal Government and the adverse publicity from the number of suits charging the banks with fraud, the process has become a little clearer and more fair to the homeowner faced with foreclosure.

The banks now seem to have a new attitude regarding the process. Banks want to keep the homeowner in the home if at all possible. One of the most difficult to deal with has hired many more people to process the paperwork through the decision making process and is working in the Equator system so that paperwork just doesnt get lost any more. Once filed, documents are tracked by computer from the time they are entered and accepted by the system.

It is now possible to get a commitment from the bank (some) on an acceptable price prior to the actual MLS listing so that an offer can be processed quickly. You the homeowner will be certifying that the sale is an arms length transaction between unrelated and unaffiliated parties and that you will not take title at some later date from the buyer. You will not receive any funds from the closing other than relocation expenses which are subject to your leaving the property in clean and functioning condition.

There are other guidelines and information available on the web on the Fanny Mae or Freddie Mac websites regarding HAMP and HAFA.